Markets rally despite DIIs selling, retailers caught in frenzy

Mumbai, Dec 7 : Even as domestic institutional investors (DIIs) catch the flight off the stock markets, India’s two main indices have consistently risen to new highs, backed by foreign inflows amid prospects of a faster economic recovery.
As per provisional numbers available on the NSE, domestic institutional investments were net sellers of Rs 17,226 crore over the last seven trading sessions. In contrast, foreign institutional investments were net buyers of Rs 23,738 crore in the cash markets.
“Selling by the domestic institutions was more than offset by buying by FPIs,” said Deepak Jasani, Head of Retail Research at HDFC Securities.
Last month, the Indian equity market witnessed a significant dichotomy as the DIIs logged the highest outflow of funds at $5.9 billion, although net FIIs purchase touched an all-time high for any month ever.
Analysts cited expensive valuations, rising volatility and a chance to book profits among the reasons for the steady sell-off by DIIs.
On Monday, the Indian markets received healthy foreign inflows of Rs 3,792.06 crore.